Correlation Between Feat Fund and Israel China
Can any of the company-specific risk be diversified away by investing in both Feat Fund and Israel China at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Feat Fund and Israel China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Feat Fund Investments and Israel China Biotechnology, you can compare the effects of market volatilities on Feat Fund and Israel China and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Feat Fund with a short position of Israel China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feat Fund and Israel China.
Diversification Opportunities for Feat Fund and Israel China
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Feat and Israel is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Feat Fund Investments and Israel China Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel China Biotech and Feat Fund is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Feat Fund Investments are associated (or correlated) with Israel China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel China Biotech has no effect on the direction of Feat Fund i.e., Feat Fund and Israel China go up and down completely randomly.
Pair Corralation between Feat Fund and Israel China
Assuming the 90 days trading horizon Feat Fund Investments is expected to under-perform the Israel China. But the stock apears to be less risky and, when comparing its historical volatility, Feat Fund Investments is 3.15 times less risky than Israel China. The stock trades about -0.05 of its potential returns per unit of risk. The Israel China Biotechnology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 57,500 in Israel China Biotechnology on September 13, 2024 and sell it today you would earn a total of 1,300 from holding Israel China Biotechnology or generate 2.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Feat Fund Investments vs. Israel China Biotechnology
Performance |
| Timeline |
| Feat Fund Investments |
| Israel China Biotech |
Feat Fund and Israel China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feat Fund and Israel China
The main advantage of trading using opposite Feat Fund and Israel China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feat Fund position performs unexpectedly, Israel China can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Israel China will offset losses from the drop in Israel China's long position.| Feat Fund vs. Nice | Feat Fund vs. The Gold Bond | Feat Fund vs. Bank Leumi Le Israel | Feat Fund vs. ICL Israel Chemicals |
| Israel China vs. GODM Investments | Israel China vs. Feat Fund Investments | Israel China vs. Scope Metals Group | Israel China vs. One Software Technologies |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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